Ether Hounds Bitcoin in Race for Crypto Crown – Democrat Blog

According to data platform CoinMarketCap, bitcoin’s dominance, or its market value share of the cryptocurrency market, has fallen to 39.1% after peaking at 47.5% in mid-June this year. year. Ether, meanwhile, rose from 16% to 20.5%.

The young shoot is still far from dethroning bitcoin as the first cryptocurrency, a reversal that aficionados call “the turnaround”. It has, however, gained ground: in January 2021, bitcoin reigned supreme with 72% of the share, while ether occupied a meager 10%.

As for price, one ether is now worth 0.082 bitcoin, near December 2021 highs and significantly above the 2022 low of 0.049 in June.

“People now view Ethereum as essentially a safe asset because they’ve seen the success of the network, they think it’s going nowhere,” said Joseph Edwards, chief financial strategist at the fund management firm. SolriseFinance.

“There is a permanence to how Ethereum is perceived in the crypto ecosystem.”

Chart: Bitcoin’s dominance is fading

Wayward Crypto

The merger, which is expected to take place on Thursday after several delays, could lead to wider use of blockchain, which could boost the price of ether – although nothing is certain in a fickle crypto market.

Ethereum forms the backbone of much of the “Web3” vision of an internet where cryptocurrencies take center stage, powering applications involving cryptocurrency derivatives such as decentralized finance and cryptocurrencies. non-fungible tokens – although that much-heralded dream is still not realized.

Bitcoin and ether have both halved this year on fears of excessive interest rate hikes from central banks. Nonetheless, investors seem to like the look of the merger, with Ether having risen more than 65% since the end of June. Bitcoin has barely moved over the same period.

“We will see the appeal (of ether) for some investors who are concerned about energy consumption,” said Doug Schwenk, CEO of Digital Asset Research, although he warned that ether was still far behind bitcoin.

the king is strong

Bitcoin’s diminishing dominance in the current crypto bear market is a break from previous market cycles, when investors sold lesser tokens – “altcoins” – in favor of the more liquid and reliable bitcoin.

Dethroning the king is not easy, however.

Bitcoin remains by far the most well-known cryptocurrency. Mainstream investors who have dipped their toes in the cryptocurrency market since 2020 have tended to turn to bitcoin first, as the most liquid and widely traded token.

Its $427 billion market cap is still more than double Ether’s $210 billion, and market participants strongly believe the original digital coin remains the gold standard for crypto due to its limited supply. .

Some market participants claim that bitcoin’s hold on the cryptocurrency crown is still strong, even if it has to accept other suitors. For example, Hugo Xavier, CEO of K2 Trading Partners, said his dominance could improve to a range of 50-60% if the cryptocurrency market turns bullish, but it is unlikely. again reaches 70%.

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Ether Hounds Bitcoin in Race for Crypto Crown – Democrat Blog

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